Health Savings Account FAQ
An HSA is an employee funded account which you can use towards qualifying medical, dental & vision expenses. You can choose to contribute to the account on a pre-tax basis, effectively reducing your taxable income.
You are eligible if:
- You are not covered by other health insurance, unless it is also a qualified HSA High Deductible Health Plan (HDHP)
- You are not enrolled in Medicare
- You are not covered by Tricare or Medicaid/Denali Kid Care
- You have not received VA benefits or Alaska Native/Indian Health benefits in the last 3 months
- You cannot be claimed as a dependent on another person’s tax return
- You select and are enrolled in the group insurance HSA plan
The maximum annual contribution amount from all sources (employee and/or employer) to an HSA are $3,550 for individuals and $7,100 for families in 2020.
*Note: If you are 55 or older, you may make an additional contribution of $1,000.
You can set up an HSA at most banks or credit unions. Northrim Bank offers no-cost Health Savings Accounts.
Your HSA will be a personal account that you set up through a financial institution. You own and manage your HSA funds. Your financial institution may offer a debit card to allow you to access HSA funds.
Your HSA never expires and is yours to keep, but it must be used towards qualified medical expenses. You can still use your HSA funds towards qualified expenses after retirement. See your plan administrator for details and restrictions.